Algeria Charts New Economic Direction. Is It Battling Against The Tide?

Algeria has published its 2016-19 economic strategy, designed to reduce public spending and create a more diverse and sustainable platform for growth. Promising in theory. But will the country’s legendary bureaucracy be able to implement it?

Algeria’s latest four-year economic plan was adopted in July 2016 but only made public last month. “The new growth model” outlines Algeria’s economic objectives for 2016-19 and its longer term targets up to 2030. It includes a host of major policy promises, including an aim to move towards a “true price” for energy on the domestic market, boost renewables and manufacturing output, improve economic governance, develop a framework for public private partnerships (PPPs), and resume banking reform.

Algiers aims to increase budget receipts, significantly reduce the fiscal deficit and “mobilize additional resources” on the internal market. The strategy sets out several long-term targets including boosting non-oil GDP growth to 6.5%/year for 2020-30; a 130% increase in GDP per capita over the same period; a doubling to 10% of manufacturing’s share of GDP by 2030 from 5.3% in 2015; and a cut in annual domestic energy consumption growth to 3% by 2030, from 6% in 2015. The plan also targets the diversification of exports and the modernization of the agricultural sector with the aim of reducing food imports. (CONTINUED - 2059 WORDS)

DATA INSIDE THIS ARTICLE

chart Algeria Deficit Set To Narrow As Oil Prices Rebound
chart Algeria Foreign Currency Reserves ($Bn, End Period)